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RadioShack Announces Store Closings: RETAIL:The Electronics Chain Didn't Offer Details on Its Restructuring Plan.

Posted on: Saturday, 18 February 2006, 06:00 CST

By Duluth News-Tribune, Minn.

Feb. 18--RadioShack announced Friday it will close 400 to 700corporate-owned stores as part of a restructuring initiative.

The company offered no specific details on which locations will be affected. The electronics retailer's chain includes almost 7,000 stores nationwide, plus more than100 in Mexico.

RadioShack operates two corporate stores in Duluth: one in Miller Hill Mall and another at 215 Central Ave. The company also runs a store at 3110 Tower Ave. in Superior.

Twin Ports store managers referred all questions about the pending closures to corporate offices in Fort Worth, Texas.

Jessica Study, a spokeswoman for RadioShack, said the company expects to complete an evaluation of its operations within four to six weeks. At that time, the retailer will announce which stores it plans to close.

The restructuring should not affect locally ownedRadioShack dealers, such as those in Grand Marais and Moose Lake.

RadioShack announced its plan in conjunction with the release of its disappointing fourth-quarter financial results Friday. The company's profits for the final three months of 2005 dropped62 percent compared with the same period in 2004. Analysts had expected RadioShack's income to decline, but not that sharply.

For the year, the retailer earned $265.3 million --21 percent less than in 2004.

On news of the company's weak performance, RadioShack's stock fell $1.67 to close at $19.08 Friday -- 8 percent lower than it ended trading at Thursday.

RadioShack's poor fourth quarter is just one of the fires its CEO, David Edmondson, is fighting these days, and he apologized Friday for the embarrassment he had caused the company.

Earlier this week, the Fort Worth Star-Telegram challenged the claim on Edmondson's resume that he had earned a bachelor's degree in science. In response, Edmondson issued a statement saying he had instead received a 3-year theology degree from Pacific Coast Baptist Bible College, but he has been unable to provide documentation for that claim.

Edmondson also faces trial on a charge of driving while intoxicated -- his third such charge in 17 years, according to the Star-Telegram. Neither of the prior two charges yielded convictions, but the last one did result in a deferred adjudication probation. That's a Texas diversion program that allows a defendant to plead guilty or no contest to a charge and receive probation. If the suspect successfully complies with the court-ordered terms of that probation, the charge will be dismissed. But failure to comply with the terms of probation can result in a conviction.

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Copyright (c) 2006, Duluth News-Tribune, Minn.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

NYSE:RSH,

Source: Duluth News-Tribune (Duluth, Minn.)

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